Yes, I know that this is a unrealistic way of creating oil. The ingredient would in IRL probably end up with a book.
(Wood+water=paper. Wood+coal(+lubricant)=pen/pencil)

2.2.0: Updated to 0.16.
Changed so coal are made in furnaces (Note: Inserters may fill the fuel slot first).
Crafting time have been adjusted to be better balanced.
2.1.0: Updated to 0.15.
2.0.0: Initial release